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Military-ruled Myanmar plans to import Russian gasoline and fuel oil to ease supply concerns and rising prices, a junta spokesperson said, the latest developing country to do so amid a global energy crisis.
The country has maintained friendly ties with Russia, even as both remain under sanctions from Western countries — Myanmar for the military coup that overthrew an elected government last year, and Russia for its invasion of Ukraine.
Russia is seeking new customers for its energy in the region as its biggest export destination, Europe, will impose an embargo on Russian gas in phases later this year.
“We have received permission to import petrol from Russia,” military spokesperson Zaw Min Tun said on Wednesday, adding that it was favoured for its “quality and low cost”.
Fuel oil shipments are due to start arriving from September, according to local media.
Zaw Min Tun said junta chief Min Aung Hlaing discussed oil and gas during a trip to Russia last month. Myanmar now imports its fuel through Singapore.
Myanmar would also consider joint oil exploration in the country with Russia and China, he said.
The military has set up a Russian oil purchasing committee headed by a close ally of Min Aung Hlaing to oversee the buying, import and transport of fuel at reasonable prices based on Myanmar’s needs, according to a statement published in a state newspaper on Wednesday.
In addition to political turmoil and civil unrest, Myanmar has been hit hard by high fuel prices and power cuts, prompting its military leadership to turn to imports of fuel oil that can be used in power plants.
Petrol prices have surged about 350% since the coup to between 2,300 and 2,700 kyat per litre — between 39 and 45 baht at official exchange rates.
In the past week, petrol stations have shut down in various parts of the country because of shortages, according to media reports.
Russia is also a major supplier of weapons to the Myanmar military.